Letter from Chairman Julian Fantino
Over the last month, Aleafia has made significant strides towards achieving our objective of providing the best possible care for our patients, and in turn, providing real value for our shareholders.
Our Third Quarter results marked a series of important milestones for Aleafia. During the reporting period, our first cannabis sale provided a significant boost to Aleafia’s revenue, leading to a 36 per cent increase over the previous quarter.
Meanwhile, our clinic business has undergone a series of important changes that will ensure we reach the broadest possible number of patients. These include expanded telemedicine offerings and the recruitment of new physicians and nurse practitioners to handle an increase in patient volume.
Our major cannabis cultivation operations will see us produce 98,000 kg of cannabis per year starting in 2019, positioning us among the largest Licensed Producers in Canada.
While we will remain relentlessly focused on the execution of these initiatives, it is important that Aleafia secures a platform in which we can tell this story to the broadest network of investors possible. For Aleafia, that means securing a listing on the NASDAQ Stock Exchange.
Successfully listing on a major US stock exchange would broaden Aleafia’s shareholder base, and increase appeal to institutional investors. Most importantly, we believe that securing a NASDAQ listing will provide a significant, lasting benefit to you, our shareholders.
With that objective in mind, Aleafia has asked for shareholder support to allow for a consolidation of Aleafia’s common and outstanding shares. This will assist in ensuring Aleafia meets NASDAQ’s minimum share price requirement.
In order for this to proceed, we require shareholder approval to secure the NASDAQ listing at a time that will most benefit shareholders.
There are three items I would like to make completely clear to our investors:
- Aleafia will only pursue a share consolidation if it is deemed necessary to meet NASDAQ requirements. This resolution simply allows the flexibility to pursue this option at an advantageous time for Aleafia’s shareholders.
- If a share consolidation is enacted, it will not have an effect on the percentage ownership of each individual shareholder or the company.
- We may not need to pursue a consolidation.
This last point is critical. Firstly, we will only pursue a consolidation if it is absolutely necessary to secure a listing on NASDAQ. Secondly, if we do pursue a consolidation, we will do so at the minimum ratio necessary to reach our objective of the listing.
As we move closer towards achieving our stated objective of securing a listing on NASDAQ, Aleafia is better positioned than ever. And as we continue to relentlessly focus on executing our business strategy, we look forward to making a major step, with you, our shareholders, towards a global leadership position among the top cannabis companies in the world.
Chairman, Aleafia Health Inc.
NOTE: Shareholders may contact ComputerShare at 1-800-564-6253 for assistance with voting in the December 6, 2018 Special Meeting of Shareholders.